After running some traces I realized the problem is triggered because New-InstallerUserInterface is using System.Drawing.Bitmap to get the dimensions of the passed bitmap. It seems this module is also compiled for .NET Core and hence the error.
Perhaps using another library like System.Drawing.Common or ImageSharp can solve the problem, in the meantime I am able to use icons and bitmaps by manually modifying the WXS.
I switched to ImageSharp for 5.4.2. It still doesn’t work in Windows PowerShell but I’m suppressing the error for now. You should be able to add images but you won’t see the warning about the size.